Falkirk Council is considering whether to move 150 children from funded nursery places into their own council-run settings.
The move has led to concerns about the sustainability of private and voluntary nurseries (PVI) in the area.
The National Day Nurseries Association (NDNA) says the move would remove parental choice and could force more women to leave the labour market.
Purnima Tanuku, NDNA’s CEO, said: “This cost-saving measure that Falkirk Council has come up with is an appalling plan, which would upset the lives of 150 families and many more going forward.
“It would also seriously threaten the sustainability of the 13 nurseries left in the district.
“This is a short-sighted proposal that will result in a much reduced, more rigid local offer for early learning and childcare in the years to come.”
Wellside Kindergarten is one of the nurseries that could be affected by the proposals.
Susan Hill, the nursery’s owner, said: “We can scarcely believe that the council could hold us in such contempt and treat us in this way.
“We have been delivering high-quality funded ELC (early learning and childcare) places for 25 years as a partner provider for the council.
“What will this mean for families in Falkirk over the next few years when all the private nurseries have had to close? Private nurseries should not be paying the price for the council’s financial situation.
“I really fear for the future of the nursery, for our children and staff, and for the families who will have a huge amount of upheaval if this proposal goes ahead.”
Campaigning organisation Pregnant Then Screwed fear the decision could force more women out of employment.
Carole Erskine, the organisation’s head of policy and campaigns, said: “This is an extremely disappointing and short-sighted proposal from Falkirk Council.
“Childcare is not a luxury – accessible and high quality childcare is needed by parents to allow them to work and provide for their family.
“If passed, this decision will push more women out of the labour market as they will not be able to work and have their children looked after in the hours provided by council-run nurseries.
“This decision shows how the Scottish Government’s policy for 1,140 funded hours of childcare for three and four-year-olds is crumbling across Scotland.
“Councils are continually chipping away at this flagship policy and parents, predominantly mothers, are left picking up the pieces.
“We would urge councillors to reject this decision and put the interests of families in their area first.”
The issue will be discussed at a full council meeting on Thursday.
A spokesperson for Falkirk Council said: “Falkirk Council remains committed to ensuring all eligible children can access their funded entitlement, with no reduction in the overall number of funded places.”
“No child who currently receives funded early learning and childcare will be required to move.
“We recognise the value of PVI providers and have carefully considered demand to ensure families continue to have flexible, high-quality options, including within the PVI sector.
“No final decision has been made, and this will be reviewed as part of the budget process.”
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